XML 47 R34.htm IDEA: XBRL DOCUMENT v3.8.0.1
Condensed Consolidating Financial Information (Tables)
9 Months Ended
Sep. 30, 2017
Condensed Consolidating Financial Information  
Condensed Consolidating Financial Information, Notes Guarantor (Table)

 

Condensed Consolidating Statements of Financial Position

September 30, 2017

 

 

Principal

 

Principal Life

 

Principal Financial

 

 

 

Principal

 

 

 

Financial

 

Insurance

 

Services, Inc. and

 

 

 

Financial

 

 

 

Group, Inc.

 

Company

 

Other Subsidiaries

 

 

 

Group, Inc.

 

 

 

Parent Only

 

Only

 

Combined (1)

 

Eliminations

 

Consolidated

 

 

 

(in millions)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities, available-for-sale

 

$

 

$

52,455.8

 

$

7,049.8

 

$

(367.8)

 

$

59,137.8

 

Fixed maturities, trading

 

 

55.7

 

176.8

 

 

232.5

 

Equity securities, available-for-sale

 

 

92.9

 

25.4

 

 

118.3

 

Equity securities, trading

 

 

6.3

 

1,664.6

 

 

1,670.9

 

Mortgage loans

 

 

13,288.9

 

1,420.9

 

(689.4)

 

14,020.4

 

Real estate

 

 

4.2

 

1,646.0

 

 

1,650.2

 

Policy loans

 

 

770.5

 

41.5

 

 

812.0

 

Investment in unconsolidated entities

 

14,631.1

 

2,466.1

 

7,063.8

 

(23,310.4)

 

850.6

 

Other investments

 

10.4

 

4,674.9

 

2,065.0

 

(4,039.6)

 

2,710.7

 

Cash and cash equivalents

 

618.1

 

781.3

 

2,160.3

 

(764.7)

 

2,795.0

 

Accrued investment income

 

 

561.4

 

75.6

 

(2.4)

 

634.6

 

Premiums due and other receivables

 

 

1,678.7

 

3,288.4

 

(3,450.5)

 

1,516.6

 

Deferred acquisition costs

 

 

3,265.6

 

215.8

 

 

3,481.4

 

Property and equipment

 

 

654.2

 

100.4

 

 

754.6

 

Goodwill

 

 

54.3

 

1,000.9

 

 

1,055.2

 

Other intangibles

 

 

22.1

 

1,292.6

 

 

1,314.7

 

Separate account assets

 

 

113,959.3

 

40,126.6

 

 

154,085.9

 

Other assets

 

539.9

 

1,019.3

 

4,349.4

 

(4,816.4)

 

1,092.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

15,799.5

 

$

195,811.5

 

$

73,763.8

 

$

(37,441.2)

 

$

247,933.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Contractholder funds

 

$

 —

 

$

35,562.5

 

$

2,989.8

 

$

(343.7)

 

$

38,208.6

 

Future policy benefits and claims

 

 

27,109.2

 

5,899.0

 

(879.1)

 

32,129.1

 

Other policyholder funds

 

 

802.4

 

125.5

 

(1.7)

 

926.2

 

Short-term debt

 

 

 

58.8

 

 

58.8

 

Long-term debt

 

3,127.7

 

 

709.5

 

(661.8)

 

3,175.4

 

Income taxes currently payable

 

 

 

338.9

 

(285.2)

 

53.7

 

Deferred income taxes

 

 

1,152.0

 

1,366.4

 

(1,003.2)

 

1,515.2

 

Separate account liabilities

 

 

113,959.3

 

40,126.6

 

 

154,085.9

 

Other liabilities

 

675.4

 

7,915.9

 

7,411.7

 

(10,418.7)

 

5,584.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

3,803.1

 

186,501.3

 

59,026.2

 

(13,593.4)

 

235,737.2

 

Redeemable noncontrolling interest

 

 

 

129.1

 

 

129.1

 

Stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

4.7

 

2.5

 

 

(2.5)

 

4.7

 

Additional paid-in capital

 

9,886.8

 

6,340.6

 

9,037.8

 

(15,378.4)

 

9,886.8

 

Retained earnings

 

8,784.6

 

1,723.2

 

5,037.1

 

(6,760.3)

 

8,784.6

 

Accumulated other comprehensive income

 

47.0

 

1,243.9

 

457.6

 

(1,701.5)

 

47.0

 

Treasury stock, at cost

 

(6,726.7)

 

 

 

 

(6,726.7)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders’ equity attributable to PFG

 

11,996.4

 

9,310.2

 

14,532.5

 

(23,842.7)

 

11,996.4

 

Noncontrolling interest

 

 

 

76.0

 

(5.1)

 

70.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

11,996.4

 

9,310.2

 

14,608.5

 

(23,847.8)

 

12,067.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

15,799.5

 

$

195,811.5

 

$

73,763.8

 

$

(37,441.2)

 

$

247,933.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

PFG sponsors nonqualified benefit plans. Nonqualified benefit plan assets and liabilities held in Rabbi trusts were $631.2 million and $532.6 million, respectively.

 

Condensed Consolidating Statements of Financial Position

December 31, 2016

 

 

 

Principal

 

Principal Life

 

Principal Financial

 

 

 

Principal

 

 

 

Financial

 

Insurance

 

Services, Inc. and

 

 

 

Financial

 

 

 

Group, Inc.

 

Company

 

Other Subsidiaries

 

 

 

Group, Inc.

 

 

 

Parent Only

 

Only

 

Combined (1)

 

Eliminations

 

Consolidated

 

 

 

(in millions)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities, available-for-sale

 

$

 —

 

$

48,672.1

 

$

6,559.9

 

$

(385.9)

 

$

54,846.1

 

Fixed maturities, trading

 

 

135.6

 

262.8

 

 

398.4

 

Equity securities, available-for-sale

 

 

96.3

 

2.6

 

 

98.9

 

Equity securities, trading

 

 

8.2

 

1,405.2

 

 

1,413.4

 

Mortgage loans

 

 

12,460.7

 

1,289.4

 

(519.9)

 

13,230.2

 

Real estate

 

 

4.4

 

1,364.4

 

 

1,368.8

 

Policy loans

 

 

784.8

 

39.0

 

 

823.8

 

Investment in unconsolidated entities

 

12,597.9

 

2,071.1

 

6,493.7

 

(20,389.5)

 

773.2

 

Other investments

 

9.8

 

4,740.0

 

1,783.0

 

(3,650.1)

 

2,882.7

 

Cash and cash equivalents

 

882.6

 

675.1

 

2,082.8

 

(920.9)

 

2,719.6

 

Accrued investment income

 

 

513.7

 

74.5

 

(7.6)

 

580.6

 

Premiums due and other receivables

 

 

1,538.0

 

2,836.0

 

(3,012.1)

 

1,361.9

 

Deferred acquisition costs

 

 

3,184.2

 

196.0

 

 

3,380.2

 

Property and equipment

 

 

610.4

 

88.6

 

 

699.0

 

Goodwill

 

 

54.3

 

966.5

 

 

1,020.8

 

Other intangibles

 

 

23.5

 

1,301.8

 

 

1,325.3

 

Separate account assets

 

 

103,661.9

 

36,170.7

 

 

139,832.6

 

Other assets

 

573.7

 

969.5

 

3,507.7

 

(3,792.1)

 

1,258.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

14,064.0

 

$

180,203.8

 

$

66,424.6

 

$

(32,678.1)

 

$

228,014.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Contractholder funds

 

$

 —

 

$

35,337.7

 

$

2,949.2

 

$

(333.3)

 

$

37,953.6

 

Future policy benefits and claims

 

 

24,392.6

 

5,312.1

 

(704.0)

 

29,000.7

 

Other policyholder funds

 

 

780.7

 

111.0

 

(1.3)

 

890.4

 

Short-term debt

 

 

 

51.4

 

 

51.4

 

Long-term debt

 

3,126.4

 

 

495.1

 

(495.8)

 

3,125.7

 

Income taxes currently payable

 

 

 

124.3

 

(111.4)

 

12.9

 

Deferred income taxes

 

 

533.6

 

1,111.9

 

(673.1)

 

972.4

 

Separate account liabilities

 

 

103,661.9

 

36,170.7

 

 

139,832.6

 

Other liabilities

 

710.3

 

7,300.9

 

7,425.9

 

(9,653.8)

 

5,783.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

3,836.7

 

172,007.4

 

53,751.6

 

(11,972.7)

 

217,623.0

 

Redeemable noncontrolling interest

 

 

 

97.5

 

 

97.5

 

Stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

4.7

 

2.5

 

 

(2.5)

 

4.7

 

Additional paid-in capital

 

9,686.0

 

5,305.6

 

9,010.9

 

(14,316.5)

 

9,686.0

 

Retained earnings

 

7,720.4

 

2,139.9

 

3,724.3

 

(5,864.2)

 

7,720.4

 

Accumulated other comprehensive income (loss)

 

(675.2)

 

748.4

 

(230.9)

 

(517.5)

 

(675.2)

 

Treasury stock, at cost

 

(6,508.6)

 

 

 

 

(6,508.6)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders’ equity attributable to PFG

 

10,227.3

 

8,196.4

 

12,504.3

 

(20,700.7)

 

10,227.3

 

Noncontrolling interest

 

 

 

71.2

 

(4.7)

 

66.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

10,227.3

 

8,196.4

 

12,575.5

 

(20,705.4)

 

10,293.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

14,064.0

 

$

180,203.8

 

$

66,424.6

 

$

(32,678.1)

 

$

228,014.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

PFG sponsors nonqualified benefit plans. Nonqualified benefit plan assets and liabilities held in Rabbi trusts were $570.9 million and $477.3 million, respectively.

 

Condensed Consolidating Statements of Operations

For the nine months ended September 30, 2017

 

 

 

Principal

 

Principal Life

 

Principal Financial

 

 

 

Principal

 

 

 

Financial

 

Insurance

 

Services, Inc. and

 

 

 

Financial

 

 

 

Group, Inc.

 

Company

 

Other Subsidiaries

 

 

 

Group, Inc.

 

 

 

Parent Only

 

Only

 

Combined

 

Eliminations

 

Consolidated

 

 

 

(in millions)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

Premiums and other considerations

 

$

 —

 

$

4,512.5

 

$

314.3

 

$

 —

 

$

4,826.8

 

Fees and other revenues

 

7.8

 

1,584.2

 

1,607.2

 

(316.4)

 

2,882.8

 

Net investment income

 

7.4

 

1,883.5

 

1,836.6

 

(1,145.7)

 

2,581.8

 

Net realized capital gains (losses), excluding impairment losses on available-for-sale securities

 

 

(119.2)

 

743.6

 

(0.7)

 

623.7

 

Net other-than-temporary impairment losses on available-for-sale securities

 

 

(27.8)

 

0.7

 

 

(27.1)

 

Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified from other comprehensive income

 

 

(26.1)

 

(6.4)

 

 

(32.5)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net impairment losses on available-for-sale securities

 

 

(53.9)

 

(5.7)

 

 

(59.6)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized capital gains (losses)

 

 

(173.1)

 

737.9

 

(0.7)

 

564.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

15.2

 

7,807.1

 

4,496.0

 

(1,462.8)

 

10,855.5

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims and settlement expenses

 

 

5,529.9

 

498.9

 

(8.1)

 

6,020.7

 

Dividends to policyholders

 

 

92.7

 

 

 

92.7

 

Operating expenses

 

152.1

 

1,570.2

 

1,345.8

 

(263.4)

 

2,804.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses

 

152.1

 

7,192.8

 

1,844.7

 

(271.5)

 

8,918.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

(136.9)

 

614.3

 

2,651.3

 

(1,191.3)

 

1,937.4

 

Income taxes (benefits)

 

(57.2)

 

34.1

 

481.9

 

(3.0)

 

455.8

 

Equity in the net income (loss) of subsidiaries (1)

 

1,548.3

 

566.5

 

(613.1)

 

(1,501.7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

1,468.6

 

1,146.7

 

1,556.3

 

(2,690.0)

 

1,481.6

 

Net income attributable to noncontrolling interest

 

 

 

13.0

 

 

13.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to PFG

 

$

1,468.6

 

$

1,146.7

 

$

1,543.3

 

$

(2,690.0)

 

$

1,468.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

1,468.6

 

$

1,146.7

 

$

1,556.3

 

$

(2,690.0)

 

$

1,481.6

 

Other comprehensive income

 

719.9

 

495.8

 

750.1

 

(1,240.9)

 

724.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

$

2,188.5

 

$

1,642.5

 

$

2,306.4

 

$

(3,930.9)

 

$

2,206.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Principal Life Insurance Company Only includes income from discontinued operations of $35.5 million related to its sale of Principal Global Investors, LLC to PFS in connection with a corporate reorganization.

 

Condensed Consolidating Statements of Operations

For the nine months ended September 30, 2016

 

 

 

Principal

 

Principal Life

 

Principal Financial

 

 

 

Principal

 

 

 

Financial

 

Insurance

 

Services, Inc. and

 

 

 

Financial

 

 

 

Group, Inc.

 

Company

 

Other Subsidiaries

 

 

 

Group, Inc.

 

 

 

Parent Only

 

Only

 

Combined

 

Eliminations

 

Consolidated

 

 

 

(in millions)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

Premiums and other considerations

 

$

 —

 

$

3,291.6

 

$

269.5

 

$

 —

 

$

3,561.1

 

Fees and other revenues

 

 

1,455.6

 

1,519.3

 

(287.2)

 

2,687.7

 

Net investment income

 

2.3

 

1,714.5

 

1,442.2

 

(742.0)

 

2,417.0

 

Net realized capital gains (losses), excluding impairment losses on available-for-sale securities

 

 

810.3

 

(526.4)

 

 

283.9

 

Net other-than-temporary impairment losses on available-for-sale securities

 

 

(75.4)

 

(5.6)

 

 

(81.0)

 

Other-than-temporary impairment losses on fixed  maturities, available-for-sale reclassified to other comprehensive income

 

 

8.9

 

2.7

 

 

11.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Net impairment losses on available-for-sale securities

 

 

(66.5)

 

(2.9)

 

 

(69.4)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized capital gains (losses)

 

 

743.8

 

(529.3)

 

 

214.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

2.3

 

7,205.5

 

2,701.7

 

(1,029.2)

 

8,880.3

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims and settlement expenses

 

 

4,297.8

 

511.1

 

(8.3)

 

4,800.6

 

Dividends to policyholders

 

 

122.3

 

 

 

122.3

 

Operating expenses

 

170.5

 

1,616.7

 

1,201.8

 

(242.0)

 

2,747.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses

 

170.5

 

6,036.8

 

1,712.9

 

(250.3)

 

7,669.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

(168.2)

 

1,168.7

 

988.8

 

(778.9)

 

1,210.4

 

Income taxes (benefits)

 

(68.2)

 

272.2

 

(15.6)

 

(1.6)

 

186.8

 

Equity in the net income (loss) of subsidiaries (1)

 

1,098.5

 

(107.5)

 

114.2

 

(1,105.2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

998.5

 

789.0

 

1,118.6

 

(1,882.5)

 

1,023.6

 

Net income attributable to noncontrolling interest

 

 

 

25.1

 

 

25.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to PFG

 

$

998.5

 

$

789.0

 

$

1,093.5

 

$

(1,882.5)

 

$

998.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

998.5

 

$

789.0

 

$

1,118.6

 

$

(1,882.5)

 

$

1,023.6

 

Other comprehensive income

 

978.6

 

781.9

 

1,001.8

 

(1,773.3)

 

989.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

$

1,977.1

 

$

1,570.9

 

$

2,120.4

 

$

(3,655.8)

 

$

2,012.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Principal Life Insurance Company Only includes income from discontinued operations of $94.1 million related to its sale of Principal Global Investors, LLC to PFS in connection with a corporate reorganization.

 

Condensed Consolidating Statements of Cash Flows

For the nine months ended September 30, 2017

 

 

 

Principal

 

Principal Life

 

Principal Financial

 

 

 

Principal

 

 

 

Financial

 

Insurance

 

Services, Inc. and

 

 

 

Financial

 

 

 

Group, Inc.

 

Company

 

Other Subsidiaries

 

 

 

Group, Inc.

 

 

 

Parent Only

 

Only

 

Combined

 

Eliminations

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

Operating activities

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating

 

 

 

 

 

 

 

 

 

 

 

activities

 

$

(36.7)

 

$

4,946.3

 

$

(1,094.7)

 

$

(186.2)

 

$

3,628.7

 

Investing activities

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

Purchases

 

 

(9,431.3)

 

(994.4)

 

 

(10,425.7)

 

Sales

 

 

731.7

 

292.4

 

(12.9)

 

1,011.2

 

Maturities

 

 

5,964.6

 

612.6

 

 

6,577.2

 

Mortgage loans acquired or originated

 

 

(2,078.4)

 

(278.2)

 

320.1

 

(2,036.5)

 

Mortgage loans sold or repaid

 

 

1,244.6

 

200.5

 

(147.7)

 

1,297.4

 

Real estate acquired

 

 

 

(113.6)

 

 

(113.6)

 

Real estate sold

 

 

 

457.1

 

 

457.1

 

Net purchases of property and equipment

 

 

(92.9)

 

(40.4)

 

 

(133.3)

 

Dividends and returns of capital received from unconsolidated entities

 

250.1

 

32.0

 

1,243.5

 

(1,525.6)

 

 

Net change in other investments

 

(4.4)

 

58.3

 

(354.2)

 

348.8

 

48.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

 

245.7

 

(3,571.4)

 

1,025.3

 

(1,017.3)

 

(3,317.7)

 

Financing activities

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock

 

143.1

 

 

 

 

143.1

 

Acquisition of treasury stock

 

(218.1)

 

 

 

 

(218.1)

 

Proceeds from financing element derivatives

 

 

0.1

 

 

 

0.1

 

Payments for financing element derivatives

 

 

(59.5)

 

 

 

(59.5)

 

Purchase of subsidiary shares from noncontrolling interest

 

 

 

(14.6)

 

1.3

 

(13.3)

 

Sale of subsidiary shares to noncontrolling interest

 

 

 

1.3

 

(1.3)

 

 

Dividends to common stockholders

 

(398.5)

 

 

 

 

(398.5)

 

Issuance of long-term debt

 

 

 

313.5

 

(313.5)

 

 

Principal repayments of long-term debt

 

 

 

(203.8)

 

147.6

 

(56.2)

 

Net proceeds from short-term borrowings

 

 

 

4.9

 

 

4.9

 

Dividends and capital paid to parent

 

 

(1,243.5)

 

(282.1)

 

1,525.6

 

 

Investment contract deposits

 

 

7,976.5

 

267.9

 

 

8,244.4

 

Investment contract withdrawals

 

 

(7,943.1)

 

(20.0)

 

 

(7,963.1)

 

Net increase in banking operation deposits

 

 

 

79.8

 

 

79.8

 

Other

 

 

0.8

 

 

 

0.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

(473.5)

 

(1,268.7)

 

146.9

 

1,359.7

 

(235.6)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

(264.5)

 

106.2

 

77.5

 

156.2

 

75.4

 

Cash and cash equivalents at beginning of period

 

882.6

 

675.1

 

2,082.8

 

(920.9

)

2,719.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

$

618.1

 

$

781.3

 

$

2,160.3

 

$

(764.7)

 

$

2,795.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statements of Cash Flows

For the nine months ended September 30, 2016

 

 

 

Principal

 

Principal Life

 

Principal Financial

 

 

 

Principal

 

 

 

Financial

 

Insurance

 

Services, Inc. and

 

 

 

Financial

 

 

 

Group, Inc.

 

Company

 

Other Subsidiaries

 

 

 

Group, Inc.

 

 

 

Parent Only

 

Only

 

Combined

 

Eliminations

 

Consolidated

 

 

 

(in millions)

 

Operating activities

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

$

(45.0)

 

$

2,607.3

 

$

955.8

 

$

(590.8)

 

$

2,927.3

 

Investing activities

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

Purchases

 

 

(9,913.5)

 

(685.5)

 

9.0

 

(10,590.0)

 

Sales

 

 

718.1

 

420.0

 

 

1,138.1

 

Maturities

 

 

5,351.3

 

484.7

 

 

5,836.0

 

Mortgage loans acquired or originated

 

 

(1,958.6)

 

(215.7)

 

58.0

 

(2,116.3)

 

Mortgage loans sold or repaid

 

 

1,251.7

 

202.8

 

(13.7)

 

1,440.8

 

Real estate acquired

 

 

 

(90.2)

 

 

(90.2)

 

Real estate sold

 

 

3.5

 

32.0

 

 

35.5

 

Net purchases of property and equipment

 

 

(79.4)

 

(29.7)

 

 

(109.1)

 

Dividends and returns of capital received from unconsolidated entities

 

795.2

 

2.3

 

745.0

 

(1,542.5)

 

 

Net change in other investments

 

(6.8)

 

386.3

 

(727.6)

 

305.7

 

(42.4)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

 

788.4

 

(4,238.3)

 

135.8

 

(1,183.5)

 

(4,497.6)

 

Financing activities

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock

 

25.7

 

 

 

 

25.7

 

Acquisition of treasury stock

 

(245.2)

 

 

 

 

(245.2)

 

Proceeds from financing element derivatives

 

 

0.3

 

 

 

0.3

 

Payments for financing element derivatives

 

 

(67.3)

 

 

 

(67.3)

 

Excess tax benefits from share-based payment arrangements

 

0.2

 

2.2

 

3.5

 

 

5.9

 

Purchase of subsidiary shares from noncontrolling interest

 

 

 

(3.4)

 

1.0

 

(2.4)

 

Sale of subsidiary shares to noncontrolling interest

 

 

 

1.0

 

(1.0)

 

 

Dividends to common stockholders

 

(341.1)

 

 

 

 

(341.1)

 

Issuance of long-term debt

 

 

 

62.2

 

(51.2)

 

11.0

 

Principal repayments of long-term debt

 

 

 

(13.8)

 

13.8

 

 

Net repayments of short-term borrowings

 

 

 

(143.4)

 

 

(143.4)

 

Dividends and capital paid to parent

 

 

(745.0)

 

(797.5)

 

1,542.5

 

 

Investment contract deposits

 

 

7,894.4

 

214.1

 

 

8,108.5

 

Investment contract withdrawals

 

 

(6,186.7)

 

(14.7)

 

 

(6,201.4)

 

Net increase in banking operation deposits

 

 

 

69.6

 

 

69.6

 

Other

 

 

3.3

 

0.2

 

 

3.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

(560.4)

 

901.2

 

(622.2)

 

1,505.1

 

1,223.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

183.0

 

(729.8)

 

469.4

 

(269.2)

 

(346.6)

 

Cash and cash equivalents at beginning of period

 

578.7

 

1,127.9

 

1,253.7

 

(395.5)

 

2,564.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

$

761.7

 

$

398.1

 

$

1,723.1

 

$

(664.7)

 

$

2,218.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Financial Information, Shelf Registration Guarantor (Table)

 

Condensed Consolidating Statements of Financial Position

September 30, 2017

 

 

 

 

 

 

Principal Life

 

 

 

 

 

 

Principal

 

Principal

 

Insurance Company

 

 

 

Principal

 

 

Financial

 

Financial

 

and Other

 

 

 

Financial

 

 

Group, Inc.

 

Services, Inc.

 

Subsidiaries

 

 

 

Group, Inc.

 

 

Parent Only

 

Only

 

Combined (1)

 

Eliminations

 

Consolidated

 

 

 

 

 

 

(in millions)

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

Fixed maturities, available-for-sale

 

$

 

$

 

$

59,137.8

 

$

 

$

59,137.8

Fixed maturities, trading

 

 

 

232.5

 

 

232.5

Equity securities, available-for-sale

 

 

 

118.3

 

 

118.3

Equity securities, trading

 

 

5.6

 

1,665.3

 

 

1,670.9

Mortgage loans

 

 

 

14,020.4

 

 

14,020.4

Real estate

 

 

 

1,650.2

 

 

1,650.2

Policy loans

 

 

 

812.0

 

 

812.0

Investment in unconsolidated entities

 

14,631.1

 

14,855.9

 

746.2

 

(29,382.6)

 

850.6

Other investments

 

10.4

 

105.5

 

2,594.8

 

 

2,710.7

Cash and cash equivalents

 

618.1

 

1,282.0

 

2,561.4

 

(1,666.5)

 

2,795.0

Accrued investment income

 

 

 

634.6

 

 

634.6

Premiums due and other receivables

 

 

0.5

 

1,944.9

 

(428.8)

 

1,516.6

Deferred acquisition costs

 

 

 

3,481.4

 

 

3,481.4

Property and equipment

 

 

 

754.6

 

 

754.6

Goodwill

 

 

 

1,055.2

 

 

1,055.2

Other intangibles

 

 

 

1,314.7

 

 

1,314.7

Separate account assets

 

 

 

154,085.9

 

 

154,085.9

Other assets

 

539.9

 

179.5

 

1,479.9

 

(1,107.1)

 

1,092.2

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

15,799.5

 

$

16,429.0

 

$

248,290.1

 

$

(32,585.0)

 

$

247,933.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

Contractholder funds

 

$

 

$

 

$

38,208.6

 

$

 

$

38,208.6

Future policy benefits and claims

 

 

 

32,129.1

 

 

32,129.1

Other policyholder funds

 

 

 

926.2

 

 

926.2

Short-term debt

 

 

 

58.8

 

 

58.8

Long-term debt

 

3,127.7

 

429.0

 

47.7

 

(429.0)

 

3,175.4

Income taxes currently payable

 

 

 

171.5

 

(117.8)

 

53.7

Deferred income taxes

 

 

 

2,511.3

 

(996.1)

 

1,515.2

Separate account liabilities

 

 

 

154,085.9

 

 

154,085.9

Other liabilities

 

675.4

 

1,467.5

 

5,035.5

 

(1,594.1)

 

5,584.3

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

3,803.1

 

1,896.5

 

233,174.6

 

(3,137.0)

 

235,737.2

 

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interest

 

 

 

129.1

 

 

129.1

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

 

 

Common stock

 

4.7

 

 

11.0

 

(11.0)

 

4.7

Additional paid-in capital

 

9,886.8

 

9,037.8

 

11,352.4

 

(20,390.2)

 

9,886.8

Retained earnings

 

8,784.6

 

5,037.1

 

3,216.5

 

(8,253.6)

 

8,784.6

Accumulated other comprehensive income

 

47.0

 

457.6

 

337.6

 

(795.2)

 

47.0

Treasury stock, at cost

 

(6,726.7)

 

 

(2.0)

 

2.0

 

(6,726.7)

 

 

 

 

 

 

 

 

 

 

 

Total stockholders’ equity attributable to PFG

 

11,996.4

 

14,532.5

 

14,915.5

 

(29,448.0)

 

11,996.4

Noncontrolling interest

 

 

 

70.9

 

 

70.9

 

 

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

11,996.4

 

14,532.5

 

14,986.4

 

(29,448.0)

 

12,067.3

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

15,799.5

 

$

16,429.0

 

$

248,290.1

 

$

(32,585.0)

 

$

247,933.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

PFG sponsors nonqualified benefit plans. Nonqualified benefit plan assets and liabilities held in Rabbi trusts were $631.2 million and $532.6 million, respectively.

 

Condensed Consolidating Statements of Financial Position

December 31, 2016

 

 

 

 

 

 

 

Principal Life

 

 

 

 

 

 

Principal

 

Principal

 

Insurance Company

 

 

 

Principal

 

 

Financial

 

Financial

 

and Other

 

 

 

Financial

 

 

Group, Inc.

 

Services, Inc.

 

Subsidiaries

 

 

 

Group, Inc.

 

 

Parent Only

 

Only

 

Combined (1)

 

Eliminations

 

Consolidated

 

 

 

 

 

 

(in millions)

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

Fixed maturities, available-for-sale

 

$

 

$

 

$

54,846.1

 

$

 

$

54,846.1

Fixed maturities, trading

 

 

 

398.4

 

 

398.4

Equity securities, available-for-sale

 

 

 

98.9

 

 

98.9

Equity securities, trading

 

 

 

1,413.4

 

 

1,413.4

Mortgage loans

 

 

 

13,230.2

 

 

13,230.2

Real estate

 

 

 

1,368.8

 

 

1,368.8

Policy loans

 

 

 

823.8

 

 

823.8

Investment in unconsolidated entities

 

12,597.9

 

12,532.4

 

697.5

 

(25,054.6)

 

773.2

Other investments

 

9.8

 

135.9

 

2,737.0

 

 

2,882.7

Cash and cash equivalents

 

882.6

 

1,203.4

 

2,114.8

 

(1,481.2)

 

2,719.6

Accrued investment income

 

 

0.1

 

580.5

 

 

580.6

Premiums due and other receivables

 

 

0.3

 

1,503.1

 

(141.5)

 

1,361.9

Deferred acquisition costs

 

 

 

3,380.2

 

 

3,380.2

Property and equipment

 

 

 

699.0

 

 

699.0

Goodwill

 

 

 

1,020.8

 

 

1,020.8

Other intangibles

 

 

 

1,325.3

 

 

1,325.3

Separate account assets

 

 

 

139,832.6

 

 

139,832.6

Other assets

 

573.7

 

185.6

 

1,200.9

 

(701.4)

 

1,258.8

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

14,064.0

 

$

14,057.7

 

$

227,271.3

 

$

(27,378.7)

 

$

228,014.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

Contractholder funds

 

$

 

$

 

$

37,953.6

 

$

 

$

37,953.6

Future policy benefits and claims

 

 

 

29,000.7

 

 

29,000.7

Other policyholder funds

 

 

 

890.4

 

 

890.4

Short-term debt

 

 

 

127.9

 

(76.5)

 

51.4

Long-term debt

 

3,126.4

 

142.1

 

(0.8)

 

(142.0)

 

3,125.7

Income taxes currently payable

 

 

 

68.3

 

(55.4)

 

12.9

Deferred income taxes

 

 

 

1,619.3

 

(646.9)

 

972.4

Separate account liabilities

 

 

 

139,832.6

 

 

139,832.6

Other liabilities

 

710.3

 

1,411.3

 

4,962.1

 

(1,300.4)

 

5,783.3

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

3,836.7

 

1,553.4

 

214,454.1

 

(2,221.2)

 

217,623.0

 

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interest

 

 

 

97.5

 

 

97.5

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

 

 

Common stock

 

4.7

 

 

17.8

 

(17.8)

 

4.7

Additional paid-in capital

 

9,686.0

 

9,010.9

 

10,045.9

 

(19,056.8)

 

9,686.0

Retained earnings

 

7,720.4

 

3,724.3

 

2,940.2

 

(6,664.5)

 

7,720.4

Accumulated other comprehensive loss

 

(675.2)

 

(230.9)

 

(348.7)

 

579.6

 

(675.2)

Treasury stock, at cost

 

(6,508.6)

 

 

(2.0)

 

2.0

 

(6,508.6)

 

 

 

 

 

 

 

 

 

 

 

Total stockholders’ equity attributable to PFG

 

10,227.3

 

12,504.3

 

12,653.2

 

(25,157.5)

 

10,227.3

Noncontrolling interest

 

 

 

66.5

 

 

66.5

 

 

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

10,227.3

 

12,504.3

 

12,719.7

 

(25,157.5)

 

10,293.8

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

14,064.0

 

$

14,057.7

 

$

227,271.3

 

$

(27,378.7)

 

$

228,014.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

PFG sponsors nonqualified benefit plans. Nonqualified benefit plan assets and liabilities held in Rabbi trusts were $570.9 million and $477.3 million, respectively.

 

Condensed Consolidating Statements of Operations

For the nine months ended September 30, 2017

 

 

 

 

 

 

 

Principal Life

 

 

 

 

 

 

Principal

 

Principal

 

Insurance

 

 

 

Principal

 

 

Financial

 

Financial

 

Company and

 

 

 

Financial

 

 

Group, Inc.

 

Services, Inc.

 

Other Subsidiaries

 

 

 

Group, Inc.

 

 

Parent Only

 

Only

 

Combined

 

Eliminations

 

Consolidated

 

 

 

 

 

 

(in millions)

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

Premiums and other considerations

 

$

 

$

 

$

4,826.8

 

$

 

$

4,826.8

Fees and other revenues

 

7.8

 

0.2

 

2,881.9

 

(7.1)

 

2,882.8

Net investment income (loss)

 

7.4

 

(2.0)

 

2,572.0

 

4.4

 

2,581.8

Net realized capital gains, excluding impairment losses on available-for-sale securities

 

 

4.5

 

619.2

 

 

623.7

Net other-than-temporary impairment losses on available-for-sale securities

 

 

 

(27.1)

 

 

(27.1)

Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified from other comprehensive income

 

 

 

(32.5)

 

 

(32.5)

 

 

 

 

 

 

 

 

 

 

 

Net impairment losses on available-for-sale securities

 

 

 

(59.6)

 

 

(59.6)

 

 

 

 

 

 

 

 

 

 

 

Net realized capital gains

 

 

4.5

 

559.6

 

 

564.1

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

15.2

 

2.7

 

10,840.3

 

(2.7)

 

10,855.5

Expenses

 

 

 

 

 

 

 

 

 

 

Benefits, claims and settlement expenses

 

 

 

6,020.7

 

 

6,020.7

Dividends to policyholders

 

 

 

92.7

 

 

92.7

Operating expenses

 

152.1

 

38.5

 

2,620.6

 

(6.5)

 

2,804.7

 

 

 

 

 

 

 

 

 

 

 

Total expenses

 

152.1

 

38.5

 

8,734.0

 

(6.5)

 

8,918.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

(136.9)

 

(35.8)

 

2,106.3

 

3.8

 

1,937.4

Income taxes (benefits)

 

(57.2)

 

(15.3)

 

529.5

 

(1.2)

 

455.8

Equity in the net income of subsidiaries

 

1,548.3

 

1,563.8

 

 

(3,112.1)

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

1,468.6

 

1,543.3

 

1,576.8

 

(3,107.1)

 

1,481.6

Net income attributable to noncontrolling interest

 

 

 

13.0

 

 

13.0

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to PFG

 

$

1,468.6

 

$

1,543.3

 

$

1,563.8

 

$

(3,107.1)

 

$

1,468.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

1,468.6

 

$

1,543.3

 

$

1,576.8

 

$

(3,107.1)

 

$

1,481.6

Other comprehensive income

 

719.9

 

686.1

 

688.9

 

(1,370.0)

 

724.9

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

$

2,188.5

 

$

2,229.4

 

$

2,265.7

 

$

(4,477.1)

 

$

2,206.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statements of Operations

For the nine months ended September 30, 2016

 

 

 

 

 

 

 

Principal Life

 

 

 

 

 

 

Principal

 

Principal

 

Insurance

 

 

 

Principal

 

 

Financial

 

Financial

 

Company and

 

 

 

Financial

 

 

Group, Inc.

 

Services, Inc.

 

Other Subsidiaries

 

 

 

Group, Inc.

 

 

Parent Only

 

Only

 

Combined

 

Eliminations

 

Consolidated

 

 

 

 

 

 

(in millions)

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

Premiums and other considerations

 

$

 

$

 

$

3,561.1

 

$

 

$

3,561.1

Fees and other revenues

 

 

0.6

 

2,693.1

 

(6.0)

 

2,687.7

Net investment income

 

2.3

 

17.9

 

2,391.6

 

5.2

 

2,417.0

Net realized capital gains (losses), excluding impairment losses on available-for-sale securities

 

 

(5.6)

 

289.5

 

 

283.9

Net other-than-temporary impairment losses on available-for-sale securities

 

 

 

(81.0)

 

 

(81.0)

Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to other comprehensive income

 

 

 

11.6

 

 

11.6

 

 

 

 

 

 

 

 

 

 

 

Net impairment losses on available-for-sale securities

 

 

 

(69.4)

 

 

(69.4)

 

 

 

 

 

 

 

 

 

 

 

Net realized capital gains (losses)

 

 

(5.6)

 

220.1

 

 

214.5

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

2.3

 

12.9

 

8,865.9

 

(0.8)

 

8,880.3

Expenses

 

 

 

 

 

 

 

 

 

 

Benefits, claims and settlement expenses

 

 

 

4,800.6

 

 

4,800.6

Dividends to policyholders

 

 

 

122.3

 

 

122.3

Operating expenses

 

170.5

 

7.6

 

2,574.7

 

(5.8)

 

2,747.0

 

 

 

 

 

 

 

 

 

 

 

Total expenses

 

170.5

 

7.6

 

7,497.6

 

(5.8)

 

7,669.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

(168.2)

 

5.3

 

1,368.3

 

5.0

 

1,210.4

Income taxes (benefits)

 

(68.2)

 

(22.0)

 

277.0

 

 

186.8

Equity in the net income of subsidiaries

 

1,098.5

 

1,066.2

 

 

(2,164.7)

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

998.5

 

1,093.5

 

1,091.3

 

(2,159.7)

 

1,023.6

Net income attributable to noncontrolling interest

 

 

 

25.1

 

 

25.1

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to PFG

 

$

998.5

 

$

1,093.5

 

$

1,066.2

 

$

(2,159.7)

 

$

998.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

998.5

 

$

1,093.5

 

$

1,091.3

 

$

(2,159.7)

 

$

1,023.6

Other comprehensive income

 

978.6

 

942.1

 

969.3

 

(1,901.0)

 

989.0

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

$

1,977.1

 

$

2,035.6

 

$

2,060.6

 

$

(4,060.7)

 

$

2,012.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statements of Cash Flows

For the nine months ended September 30, 2017

 

 

 

 

 

 

 

Principal Life

 

 

 

 

 

 

Principal

 

Principal

 

Insurance

 

 

 

Principal

 

 

Financial

 

Financial

 

Company and

 

 

 

Financial

 

 

Group, Inc.

 

Services, Inc.

 

Other Subsidiaries

 

 

 

Group, Inc.

 

 

Parent Only

 

Only

 

Combined

 

Eliminations

 

Consolidated

 

 

 

 

 

 

(in millions)

 

 

 

 

Operating activities

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

$

(36.7)

 

$

449.3

 

$

3,721.0

 

$

(504.9)

 

$

3,628.7

Investing activities

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

Purchases

 

 

 

(10,425.7)

 

 

(10,425.7)

Sales

 

 

 

1,011.2

 

 

1,011.2

Maturities

 

 

 

6,577.2

 

 

6,577.2

Mortgage loans acquired or originated

 

 

 

(2,036.5)

 

 

(2,036.5)

Mortgage loans sold or repaid

 

 

 

1,297.4

 

 

1,297.4

Real estate acquired

 

 

 

(113.6)

 

 

(113.6)

Real estate sold

 

 

 

457.1

 

 

457.1

Net purchases of property and equipment

 

 

 

(133.3)

 

 

(133.3)

Dividends and returns of capital received from (contributed to) unconsolidated entities

 

250.1

 

(37.0)

 

 

(213.1)

 

Net change in other investments

 

(4.4)

 

(70.5)

 

(106.6)

 

230.0

 

48.5

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

 

245.7

 

(107.5)

 

(3,472.8)

 

16.9

 

(3,317.7)

Financing activities

 

 

 

 

 

 

 

 

 

 

Issuance of common stock

 

143.1

 

 

 

 

143.1

Acquisition of treasury stock

 

(218.1)

 

 

 

 

(218.1)

Proceeds from financing element derivatives

 

 

 

0.1

 

 

0.1

Payments for financing element derivatives

 

 

 

(59.5)

 

 

(59.5)

Purchase of subsidiary shares from noncontrolling interest

 

 

 

(13.3)

 

 

(13.3)

Dividends to common stockholders

 

(398.5)

 

 

 

 

(398.5)

Issuance of long-term debt

 

 

6.4

 

 

(6.4)

 

Principal repayments of long-term debt

 

 

(19.5)

 

(56.2)

 

19.5

 

(56.2)

Net proceeds from (repayments of) short-term borrowings

 

 

 

(71.6)

 

76.5

 

4.9

Capital received from (dividends and capital paid to) parent

 

 

(250.1)

 

37.0

 

213.1

 

Investment contract deposits

 

 

 

8,244.4

 

 

8,244.4

Investment contract withdrawals

 

 

 

(7,963.1)

 

 

(7,963.1)

Net increase in banking operation deposits

 

 

 

79.8

 

 

79.8

Other

 

 

 

0.8

 

 

0.8

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

(473.5)

 

(263.2)

 

198.4

 

302.7

 

(235.6)

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

(264.5)

 

78.6

 

446.6

 

(185.3)

 

75.4

Cash and cash equivalents at beginning of period

 

882.6

 

1,203.4

 

2,114.8

 

(1,481.2)

 

2,719.6

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

$

618.1

 

$

1,282.0

 

$

2,561.4

 

$

(1,666.5)

 

$

2,795.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statements of Cash Flows

For the nine months ended September 30, 2016

 

 

 

 

 

 

 

Principal Life

 

 

 

 

 

 

Principal

 

Principal

 

Insurance

 

 

 

Principal

 

 

Financial

 

Financial

 

Company and

 

 

 

Financial

 

 

Group, Inc.

 

Services, Inc.

 

Other Subsidiaries

 

 

 

Group, Inc.

 

 

Parent Only

 

Only

 

Combined

 

Eliminations

 

Consolidated

 

 

 

 

 

 

(in millions)

 

 

 

 

Operating activities

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

$

(45.0)

 

$

(2.5)

 

$

2,849.7

 

$

125.1

 

$

2,927.3

Investing activities

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

Purchases

 

 

 

(10,590.0)

 

 

(10,590.0)

Sales

 

 

 

1,138.1

 

 

1,138.1

Maturities

 

 

 

5,836.0

 

 

5,836.0

Mortgage loans acquired or originated

 

 

 

(2,116.3)

 

 

(2,116.3)

Mortgage loans sold or repaid

 

 

 

1,440.8

 

 

1,440.8

Real estate acquired

 

 

 

(90.2)

 

 

(90.2)

Real estate sold

 

 

 

35.5

 

 

35.5

Net purchases of property and equipment

 

 

 

(109.1)

 

 

(109.1)

Dividends and returns of capital received from unconsolidated entities

 

795.2

 

886.0

 

 

(1,681.2)

 

Net change in other investments

 

(6.8)

 

220.3

 

121.2

 

(377.1)

 

(42.4)

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

 

788.4

 

1,106.3

 

(4,334.0)

 

(2,058.3)

 

(4,497.6)

Financing activities

 

 

 

 

 

 

 

 

 

 

Issuance of common stock

 

25.7

 

 

 

 

25.7

Acquisition of treasury stock

 

(245.2)

 

 

 

 

(245.2)

Proceeds from financing element derivatives

 

 

 

0.3

 

 

0.3

Payments for financing element derivatives

 

 

 

(67.3)

 

 

(67.3)

Excess tax benefits from share-based payment arrangements

 

0.2

 

 

5.7

 

 

5.9

Purchase of subsidiary shares from noncontrolling interest

 

 

 

(2.4)

 

 

(2.4)

Dividends to common stockholders

 

(341.1)

 

 

 

 

(341.1)

Issuance of long-term debt

 

 

5.0

 

78.0

 

(72.0)

 

11.0

Principal repayments of long-term debt

 

 

(20.0)

 

 

20.0

 

Net repayments of short-term borrowings

 

 

 

(166.0)

 

22.6

 

(143.4)

Dividends and capital paid to parent

 

 

(795.2)

 

(886.0)

 

1,681.2

 

Investment contract deposits

 

 

 

8,108.5

 

 

8,108.5

Investment contract withdrawals

 

 

 

(6,201.4)

 

 

(6,201.4)

Net increase in banking operation deposits

 

 

 

69.6

 

 

69.6

Other

 

 

 

3.5

 

 

3.5

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

(560.4)

 

(810.2)

 

942.5

 

1,651.8

 

1,223.7

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

183.0

 

293.6

 

(541.8)

 

(281.4)

 

(346.6)

Cash and cash equivalents at beginning of period

 

578.7

 

730.5

 

2,413.3

 

(1,157.7)

 

2,564.8

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

$

761.7

 

$

1,024.1

 

$

1,871.5

 

$

(1,439.1)

 

$

2,218.2